Apple, the company behind many popular electronic devices including the iPhone and the iPod Touch devices has seen a huge boost in profits. The company posted their results for the fourth quarter of the year yesterday and they saw a huge increase in their profits. However, despite this huge increase in their profits, their share price fell shortly after the results were announced.
Apple is one of the largest companies around at the moment and they saw their profits increase by almost 70% as the results for the fourth quarter earnings were posted yesterday. However, shortly after the results were posted, the company’s share price fell by almost 6%. This has left a lot of people wondering why as the profit report was so good; however, the reason is mainly down to the iPad. Although Apple saw record numbers of iPhone sales in their fourth quarter results, they found that they hadn’t sold the number of iPad devices that they had predicted. Apple released the iPad just a few months ago and they were predicted to sell around 5 million units, however, they have fallen short of this target selling just over 4 million. This is due to production problems and Apple claims that this problem is now resolved.
Their fall in share price was also due to the profit margins of their latest products being slightly lower than the older iPhone models and their Macbook computers.